the financial program of the New Popular Front criticized by Bercy and the employers | EUROtoday

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Bruno Le Maire, Minister of the Economy, during President Emmanuel Macron's press conference, in Paris, June 12, 2024.

The government, which places the intense proper and the intense left again to again, jumped on the alternative. The financial program of the New Popular Front combining the lefts and made public on Friday June 14, is “a total delirium », immediately warned the Minister of the Economy, Bruno Le Maire, on Franceinfo, the same day. “It’s 1981 to the power of ten,” he assured, brandishing the specter of “return of mass unemployment”, of “declassification” and a few “exit from Europe”. “Expect the worst!” “, he warned.

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Although not quantified at this stage, the “NFP” program in fact includes several measures likely to shake up the budgets of its ministry, in a context of deterioration of accounts and tensions on the markets: repeal of the insurance reforms unemployment and pensions, 10% increase in housing assistance, exit from European budgetary rules, creation of subsidized jobs, increase in the index point for civil servants by 10%, universal rent guarantee, increase in the number of civil servants, increase of the budgets of certain ministries – sport would increase to 1% of the budget (i.e. 5 billion), and culture to 1% of the gross domestic product (GDP), or 26 billion euros.

Added to this are measures that aren’t extremely popular at Bercy, and extra usually within the financial world, not due to their value however as a result of they’re seen as dangerous to the financial system. Like the indexation of salaries to inflation, accused of fueling worth rises, or the rise within the minimal wage to 1,600 euros, which some economists declare would hurt employment. Same factor for the questioning of free commerce, to which corporations are usually hooked up. Or the refusal of European budgetary guidelines, which underpin the one forex and apply to 27 member nations. “We can always promise that we will shave for free, we can always promise that the average salary will be 2 000 euros for everyoneBruno Le Maire got carried away on Friday. But, when you forget economic reality, it reminds you of yourself. »

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Complex construction site

The New Popular Front, which promises an amending budget this summer to “abolish the privileges of billionaires”rejects accusations of budgetary laxity, recalling that its 2022 program was ” loop “, in different phrases that the expenditure was financed by new income permitting, finally, to scale back the general public deficit. The measures offered on Friday suggest to tax the richest and enormous teams, and to scale back tax loopholes. Companies would see their assist or contribution reductions diminished, and their taxation elevated, with elevated taxation on monetary transactions and on “super profits of agro-industrialists and mass retailers”. Wealthy households would as soon as once more be topic to the wealth tax (ISF), with a local weather part, to the taxation of capital (removing of the “flat tax”), to the “exit tax” on taxpayers who left for overseas, whereas the inheritance tax can be elevated by concentrating on massive property. Social safety contributions on the best salaries can be elevated, in addition to on monetary earnings akin to dividends, participation, worker financial savings, and time beyond regulation.

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